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The so-called "national platform for electric mobility" comes after Merkel pledged to have one million electric vehicles on the road within the next decade.
Merkel says there needs to be greater independence from natural resources. She is pushing sustainable technologies that will help limit the effects of climate change.
BMW AG's chief executive Norbert Reithofer says Germany is well positioned to become a technology leader in that market.
He says: "To make this happen, our leaders in politics and industry have to be pulling in the same direction."
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